3 US Stocks That Might Be Priced Below Their Estimated Value

As the U.S. stock market experiences modest gains, with major indices like the S&P 500 and Nasdaq extending their winning streaks, investors are keenly watching for opportunities amid fluctuating tech stocks and rising interest rates. In this environment, identifying stocks that might be priced below their estimated value can offer potential advantages to those looking to navigate these dynamic market conditions effectively.

Top 10 Undervalued Stocks Based On Cash Flows In The United States

Name	Current Price	Fair Value (Est)	Discount (Est)
Clear Secure (NYSE:YOU)	$26.95	$53.03	49.2%
Dime Community Bancshares (NasdaqGS:DCOM)	$31.14	$61.62	49.5%
Burke & Herbert Financial Services (NasdaqCM:BHRB)	$59.82	$117.93	49.3%
Afya (NasdaqGS:AFYA)	$14.88	$29.32	49.3%
Lamb Weston Holdings (NYSE:LW)	$63.05	$125.18	49.6%
Ally Financial (NYSE:ALLY)	$36.21	$71.66	49.5%
HealthEquity (NasdaqGS:HQY)	$97.10	$189.22	48.7%
Mr. Cooper Group (NasdaqCM:COOP)	$94.43	$187.71	49.7%
Progress Software (NasdaqGS:PRGS)	$65.01	$128.87	49.6%
South Atlantic Bancshares (OTCPK:SABK)	$15.69	$30.76	49%

Click here to see the full list of 170 stocks from our Undervalued US Stocks Based On Cash Flows screener.

Underneath we present a selection of stocks filtered out by our screen.

Okta (NasdaqGS:OKTA)

Overview: Okta, Inc. operates as an identity partner both in the United States and internationally, with a market cap of approximately $13.84 billion.

Operations: The company generates revenue of $2.53 billion from its Internet Software & Services segment.

Estimated Discount To Fair Value: 40.5%

Okta is trading at US$84.38, significantly below its estimated fair value of US$141.8, suggesting potential undervaluation based on cash flows. Recent earnings show a shift to profitability with net income of US$16 million for Q3 2024 compared to a loss last year, supporting expectations of continued growth. Revenue is forecasted to grow faster than the market at 9.4% annually, while strategic partnerships enhance security offerings and market position.

• Our earnings growth report unveils the potential for significant increases in Okta's future results.
• Click to explore a detailed breakdown of our findings in Okta's balance sheet health report.

Roku (NasdaqGS:ROKU)

Overview: Roku, Inc. operates a TV streaming platform both in the United States and internationally, with a market cap of approximately $11.24 billion.

Operations: The company's revenue segments consist of Devices generating $579.97 million and Platform contributing $3.32 billion.

Estimated Discount To Fair Value: 38.6%

Roku is trading at US$79.91, considerably below its estimated fair value of US$130.19, indicating potential undervaluation based on cash flows. The company is expected to achieve profitability within three years, with revenue growth projected at 10.8% annually, outpacing the broader U.S. market growth rate of 9.1%. Recent product launches and strategic partnerships enhance Roku's platform capabilities and content offerings, potentially strengthening its competitive position in the streaming industry.

• Our growth report here indicates Roku may be poised for an improving outlook.
• Click here and access our complete balance sheet health report to understand the dynamics of Roku.

Zscaler (NasdaqGS:ZS)

Overview: Zscaler, Inc. is a global cloud security company with a market capitalization of approximately $28.52 billion.

Operations: The company's revenue primarily comes from sales of subscription services to its cloud platform and related support services, totaling $2.30 billion.

Estimated Discount To Fair Value: 41.5%

Zscaler is trading at US$188.71, significantly below its estimated fair value of US$322.78, highlighting potential undervaluation based on cash flows. The company is expected to achieve profitability within three years, with revenue growth projected at 16.3% annually, surpassing the U.S. market's 9.1% growth rate. Recent partnerships with Nokia and Cognizant enhance Zscaler's security offerings and expand its market reach, potentially reinforcing its position in the cybersecurity sector amidst evolving threats.

• Our comprehensive growth report raises the possibility that Zscaler is poised for substantial financial growth.
• Click here to discover the nuances of Zscaler with our detailed financial health report.

Make It Happen

• Click through to start exploring the rest of the 167 Undervalued US Stocks Based On Cash Flows now.
• Already own these companies? Link your portfolio to Simply Wall St and get alerts on any new warning signs to your stocks.
• Discover a world of investment opportunities with Simply Wall St's free app and access unparalleled stock analysis across all markets.

Contemplating Other Strategies?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
• Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence.
• Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com